SGX primary-listed stocks buy back S$590m of shares in 2019

CLOSE to 80 primary-listed stocks repurchased shares worth some S$590 million last year, accounting for about two-fifths of the S$1.53 billion in buybacks made by 100 stocks in 2018, data from the Singapore Exchange (SGX) shows on Friday. 

The 2019 buyback tally was led by OCBC, DBS, Keppel Reit, ST Engineering and Yangzijiang Shipbuilidng (Holdings). 

"Buybacks conducted by STI (Straits Times Index) stocks made up two-thirds of the S$590 million total consideration in 2019. By comparison, STI stocks contributed four-fifths of the S$1.53 billion in total buyback consideration for primary-listed stocks in 2018," SGX explained. 

In the month of December, 20 SGX primary-listed stocks bought back 43 million shares for S$70 million. This was up from S$52 million for November 2019, and similar to the S$78 million filed for December 2018. 

Last month, OCBC bought back about 2.4 million shares for some S$26 million, while DBS bought back 500,000 shares for S$12.5 million, and Keppel Reit repurchased about 10 million shares for S$12.4 million. 

Share buybacks involve the repurchase of shares, which may be converted into treasury shares, via the open market. Motivations for share buybacks may include employee compensation plans, or long-term capital management, SGX added.